The SM Store offers a broad product range that appeals to different market segments, making it a one-stop shop for all.
SM Investments Corporation’s retail arm, SM Retail, Inc., is making significant strides in attracting new consumer segments—particularly the fast-growing Gen Z demographic.
According to recent data from The SM Store, the company’s department store chain, in-store purchases by younger shoppers rose by 13% in 2024, highlighting a notable shift in shopping behavior and a renewed interest in physical retail experiences.
“Our strategy has always been ‘We’ve got it all for you,’” said Jonathan Ng, Executive Vice President at SM Retail. “The SM Store offers a wide range of products that cater to various market segments, and we’re now placing even greater emphasis on connecting with Gen Z.”
This uptick in Gen Z shoppers reflects their increasing purchasing power. “While Gen X and Millennials still dominate in spending, we are strategically investing in Gen Z as they emerge as a powerful consumer force,” Ng added.
Who is Gen Z?
- Gen X: Ages 45–60 (born 1965–1980)
- Millennials: Ages 29–44 (born 1981–1996)
- Gen Z: Ages 13–28 (born 1997–2012)
Based on the latest census from the Philippine Statistics Authority, Gen Z now makes up 38% of the country’s population, with around 41 million individuals—a substantial market opportunity for retailers like SM.
A 2024 report by The Fourth Wall and Uniquecorn Strategies found that 31% of Filipino Gen Zs prefer in-store shopping, valuing the ability to see and touch products firsthand. This reflects a broader global trend: a January 2025 report by Adyen, shared by Retail Dive, revealed that nearly 75% of Gen Z shoppers worldwide shop in person at least once a week, viewing it as a key part of their lifestyle.
“Gen Z shoppers are experiential and tactile,” Ng noted. “At The SM Store, we’re evolving to meet these expectations by modernizing our store designs and enhancing customer service.”
Enhancing the in-store experience
To enrich the shopping journey, SM Retail has introduced strategic partnerships, such as its collaboration with Coffee Bean and Tea Leaf (CBTL), aimed at making in-store visits more enjoyable. In addition, promotions, convenience, and instant product access align with Gen Z’s values.
“Customer service is at the heart of SM’s brand, with personal shoppers always available to assist,” Ng emphasized.
Strong financial performance
SM Store’s focus on innovation—across merchandise, store layout, and customer engagement—continues to pay off. In 2024, SM Retail posted a net income of P20.9 billion, a 5% increase from 2023, while retail revenues grew to P434.5 billion, up from P412.9 billion.
With a dynamic approach to retail and a keen focus on Gen Z, SM Retail reinforces its leadership position in the Philippine retail sector, contributing significantly to the robust performance of its parent company, SM Investments Corporation.
